U.S. AI-related stocks perform well, dollar/yen continues to rise, expectations for early U.S. interest rate cut fall | 7th Financial Tankan


2/7 (Tue) morning market trends (compared to the previous day)

traditional finance

    • NY Dow: $33,891 -0.1%
    • NASDAQ: $11,887 -1%
    • Nikkei Stock Average: ¥27,693 +0.6%
    • USD/JPY: 132.6 +0.6%
    • US dollar index: 103.6 +0.7%
    • 10-year US Treasury yield: 3.6 +3.3% annual yield
    • Gold Futures: $1,880 +0.2%

crypto assets

  • Bitcoin: $22,982 +0.4%
  • Ethereum: $1,644 +1.5%

Today’s New York Dow and Nasdaq continue to fall. Hopes for an early Fed rate cut have receded after last Friday’s unexpectedly strong US jobs report for January. US Treasury yields soared on speculation that interest rates would continue to rise.

Regarding future rate hike scenarios, Atlanta Fed President Bostic said this morning that his underlying scenario is two more rate hikes, and pointed out that an investigation is needed to see if the US jobs report for January is an outlier. Meanwhile, US Treasury Secretary Janet Yellen commented yesterday that inflationary pressures are still too high but are easing.

In addition, Fed Chair Powell refrains from speaking at 2:00 on Wednesday, August 8. The market appears to be waiting to see if the Fed’s tone changes.

connection: Bitcoin, etc. fell sharply

Important economic indicators and plans for February

  • 10th 24:00 (Friday): U.S. Michigan Consumer Confidence Index February preliminary figures
  • 8:50 on the 13th (Monday): Japan October-December Quarterly Real Gross Domestic Product (GDP, preliminary figures)
  • 14th 22:30 (Tue): US January Consumer Price Index (CPI)
  • 15th 22:30 (Wednesday): US January retail sales
  • 23rd 22:30 (Thursday): U.S. October-December Quarterly GDP Personal Consumption and Core PCE Revised Values
  • 24th 22:30 (Friday): US January Personal Consumption Expenditure (PCE deflator)
  • 24th 24:00 (Friday): University of Michigan Consumer Confidence Index February Confirmed value

connection: What is the “dollar index” that also pays attention to the virtual currency market | Commentary for beginners

US stocks

Among US stocks, AI stocks continue to perform well. Yesterday, US business software provider Freshworks announced a partnership with Meta to bring AI conversation bots made by Freshworks to WhatsApp, Instagram Messaging and Facebook Messenger to improve the chat experience for businesses.

Google announced a partnership with US AI startup Anthropic last weekend. Anthropic selects Google Cloud as its preferred cloud provider to provide the compute power it needs to build “trusted AI systems.” Google Cloud, meanwhile, will build a large next-generation TPU (Tensor Processing Unit) and GPU cluster that Anthropic will use to train and deploy AI systems. According to the Financial Times and Bloomberg, Google invested about $300-400 million in Anthropic. Anthropic is a company launched by the development members of the language model “GPT-3”, which is the basis of ChatGPT developed by Microsoft-funded OpenAI.

Last week, Sundar Pichai, CEO of Google’s parent company Alphabet, revealed at an earnings conference that the company will start offering a conversational bot “LaMDA” within a few weeks as a strategy for AI productization. There is growing speculation that competition with Microsoft will become more intense in the future.

connection: Google’s parent company Alphabet “AI is very important to achieve corporate mission”

By individual stock, c3.ai +6.4%, Big Bear.ai +18%, Tesla +2.5%, Microsoft -0.6%, Alphabet -1.8%, Amazon -1.1%, Apple -1.8%, Meta -0.25% , Coinbase -0.05%, Microstrategy -1%, Algo Blockchain +35%.

connection: Recommended for cryptocurrency investors, advantageous shareholder benefits “10 selections”

Dollar/yen continues to rise

US dollar = 132.6 yen, up 0.6% from the previous day. US dollar buying continued after last Friday’s strong US employment data. Yesterday, the dollar-yen pair surged to around ¥132.90 at one point after reports that the Japanese government had approached the dovish Deputy Governor Amemiya as a candidate to succeed Kuroda, the governor of the Bank of Japan. In addition, there is a view that the fear that tensions between the two countries will increase after the United States shot down a Chinese spy balloon is pushing up the world’s reserve currency, the dollar.

Source: Yahoo! Finance

connection: The background of the “strong dollar” that affects the virtual currency market also explains the correlation and factors of the weak yen

Cryptocurrency/Blockchain-related Stocks (Year-on-Year Change/Year-to-Week Change)

  • Coinbase | $74.5 (-0.05%/-0.1%)
  • MicroStrategy | $282 (-0.95%/-1%)
  • Silvergate Capital | $19.1 (+1.86%/+1.86%)
  • Algo Blockchain | $2.6 (+35%/+35%)

connection: Stock investment recommended for virtual currency investors, representative virtual currency stocks of Japan and the United States “10 selections”

GM radio last week

The 4th GM Radio was held last Friday. Four guests, including the co-founder of LayerZero Labs, who participated for the second time, and the founder of DeFi Kingdoms, talked about “Possibilities of cross-chain games” and “Challenges of blockchain games”.

connection: 4th “GM Radio” held, guests are DeFi Kingdoms executives

GM radio of the week

connection: Connext, aiming for cross-chain UX optimization, will participate in the 5th “GM Radio”

The 5th GM Radio will start at 21:00 on Thursday, February 9th. Guest was Connext co-founder Rahul Sethuram. We will ask questions about Connext’s public launch, the benefits of xApps, future plans, and more.

Click here to watch the archive of the previous “zkSync” episode.

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